Report: Casinos fueled $125B spending in 2010
February 7, 2012
LAS VEGAS (AP) – A new report shows that U.S. casinos and the industries that depend on them made a $125 billion economic splash in 2010 – the equivalent of 1 percent of the total U.S. gross domestic product.
The study, released Monday by the American Gaming Association, counts direct casino industry spending and tallies the indirect spending that comes from industries supported by casinos and activities spawned by casinos.
“There is no doubt the commercial casino industry is a significant and vital part of our nation’s economy,” association president and CEO Frank J. Fahrenkopf Jr. said in a statement. “The industry generates and supports economic activity that stretches far beyond the communities that host casinos.”
The report shows that 566 casinos in 22 states supported about $125 billion in spending and nearly 820,000 jobs in the U.S. in 2010.
In Nevada, the 343 casinos supported $36 billion in spending and more than 287,000 jobs.
Direct consumer casino spending accounts for about 350,000 jobs and $50 billion of that spending. About one-third of the money came from non-gambling sources, such as food sales, hotels and entertainment.
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Indirect spending generated about 470,000 jobs and $76 billion, according to the report.
Taxes paid directly by the industry in 2010 totaled nearly $16 billion, or $25 billion when indirect activity is counted. That brings the industry’s effective tax rate up to 32 percent, which is higher than the economy-wide total tax burden of 27 percent, researchers said.
Report researcher Coleman Bazelon, a principal with the economics consulting firm The Brattle Group, said the data show the breadth of casinos’ impact.